Question

Which of the following choices is not a potential option for a taxpayer who inherits a traditional IR from a spouse?

A. designate themselves as the account owner and treat the ira as their own.

B. Convert the ira to a Roth IRA and continue to treat themselves as the beneficiary.

C. Take distributions over their own life expectancy'

D. Delay distributions until the year the decedent would have turned 70 1/2

Answer 1

D. Delay distributions until the year the decedent would have turned 70 1/2

The options available for a taxpayer who inherits a traditional IR from a spouse are:

i) Spousal transfer (treat as your own)

ii) Open an Inherited IRA: Life expectancy method

iii) Open an Inherited IRA: 5 year method

iv) Lump sum distribution